The UK's biggest companies are highly pessimistic about the economy in 2017

Governor of the Bank of England Mark Carney.
Reuters/Pool
LONDON — The UK's biggest listed companies are highly pessimistic about the country's economic situation in the wake of its vote to leave the EU, according to a major new survey.

The bi-annual 'Boardroom Bellwether' Report, published in conjunction with the Financial Times, found that three-quarters of FTSE 350 company secretaries expected economic conditions to deteriorate in the next 12 months. 8% expected a "slight" improvement, and none expected a major improvement.

Companies were also pessimistic about the short-term prospects for the global economy. A third expected a decline in global economic conditions over the next year, 16% expected conditions to improve slightly, and none expected a "significant" improvement.

The gloom is not entirely related to Brexit, however. While 54% of companies surveyed said Brexit would have a damaging effect, only one company said that it intended to move a substantial part of its operations abroad as a consequence of Brexit. Fifty-four percent said Brexit was not among the "principal risks" they were worried about.

Companies were also significantly more positive about their own sectors. 21% expected an improvement in conditions for their industry while 36% expected no change.